eHealth, Inc. Announces Preliminary Results for the Fourth Quarter and Fiscal Year 2013; Conference Call to Be Held January 9, 2014 at 9:00 a.m. ET

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Published: Jan 8, 2014 4:15 p.m. ET

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-- Revenue for the fourth quarter of 2013 is expected to be in the range of $53 to $55 million. -- Non-GAAP net income (loss) per diluted share* for the fourth quarter of 2013 is expected to be in the range of $(0.03) to $0.04. -- Estimated submitted applications for Individual & Family Plan product in the fourth quarter of 2013 increased approximately 50% from the fourth quarter of 2012. -- Estimated submitted applications for Medicare products in the fourth quarter of 2013 increased in excess of 65% from the fourth quarter of 2012. Estimated submitted applications for Medicare Advantage product in the fourth quarter of 2013 increased in excess of 35% from the fourth quarter of 2012.

Revenue for the fiscal year 2013 is expected to be in the range of
$178 million to $180 million, above the company's guidance of $168
million to $174 million. EBITDA* for the year is expected to be in
the range of $16.0 million to $18.0 million, below the company's
guidance of $23 million to $29 million. Non-GAAP net income per
diluted share* for the fiscal year 2013 is expected to be in the
range of $0.34 to $0.41, compared to guidance of $0.61 to $0.71 per
diluted share.

Revenue for the fourth quarter of 2013 is expected to be in the range
of $53 million to $55 million. EBITDA* for the fourth quarter of 2013
is expected to be in the range of $1.0 million to $3.0 million.
Fourth quarter 2013 non-GAAP net income (loss) per diluted share* is
expected to be in the range of $(0.03) to $0.04.

Gary Lauer, chief executive officer of eHealth, stated, "We
experienced a significant increase in demand for our Individual &
Family Plan product during the fourth quarter's Open Enrollment
Period under the Affordable Care Act and made the decision to spend
into the increased demand and pursue longer-term growth at the
expense of the fourth quarter earnings."

Estimated fourth quarter 2013 submitted applications for Individual
and Family Plan (IFP) product increased approximately 50% from the
fourth quarter of 2012. The number of IFP members approved during the
fourth quarter and estimated IFP membership as of the end of the
fourth quarter of 2013 will be available as part of the company's
regularly scheduled fourth quarter and full year 2013 earnings
release.

These preliminary, unaudited results are based on management's
initial review of operations for the quarter ended December 31, 2013,
and remain subject to change based on management's ongoing review of
the fourth-quarter results. The company will report final results for
the fourth quarter and fiscal year 2013 in its regularly scheduled
earnings release and conference call.

* EBITDA is calculated by adding stock-based compensation,
depreciation and amortization expense, including intangible asset
amortization expense, other (income) expense, net and provision for
income taxes to GAAP net income. Non-GAAP net income per diluted
share excludes the effects of amortization of acquired intangible
assets, stock-based compensation expenses and the tax effects related
to these items.

Webcast and Conference Call Information
A Webcast and conference
call will be held tomorrow, January 9, 2014 at 9:00 a.m. Eastern /
6:00 a.m. Pacific Time. The Webcast will be available live on the
Investor Relations section on eHealth's website at
http://ir.ehealthinsurance.com. Individuals interested in listening
to the conference call may do so by dialing 800 706.7749 for domestic
callers and 617 614.3474 for international callers. The participant
passcode is 74663415. A telephone replay will be available two hours
following the conclusion of the call for a period of 30 days and can
be accessed by dialing 888 286.8010 for domestic callers and 617
801.6888 for international callers. The call ID for the replay is
13321095. The live and archived webcast of the call will also be
available on eHealth's website at http://www.ehealthinsurance.com
under the Investor Relations section.

About eHealth
eHealth, Inc.
EHTH, -0.52%
operates
eHealthInsurance.com, the nation's first and largest private health
insurance exchange where individuals, families and small businesses
can compare health insurance products from leading insurers side by
side and purchase and enroll in coverage online. eHealthInsurance
offers thousands of individual, family and small business health
plans underwritten by more than 180 of the nation's leading health
insurance companies. eHealthInsurance is licensed to sell health
insurance in all 50 states and the District of Columbia. eHealth,
Inc. also provides powerful online and pharmacy-based tools to help
Medicare beneficiaries navigate Medicare health insurance options,
choose the right plan and enroll in select plans online through
PlanPrescriber.com (www.planprescriber.com) and eHealthMedicare.com
(www.eHealthMedicare.com).

Non-GAAP Financial Information
This press release includes
financial measures that are not in accordance with generally accepted
accounting principles in the United States (GAAP). EBITDA is
calculated by adding stock-based compensation, depreciation and
amortization expense, including intangible asset amortization
expense, other (income) expense, net and provision for income taxes
to GAAP net income.

Non-GAAP net income consists of GAAP net income excluding the
following items:

Non-GAAP net income per diluted share is calculated by dividing
non-GAAP net income by GAAP weighted average diluted shares
outstanding.

eHealth believes that the presentation of these non-GAAP financial
measures provide important supplemental information to management and
investors regarding financial and business trends relating to the
company's financial condition and results of operations. Management
believes that the use of these non-GAAP financial measures provides
consistency and comparability with the company's past financial
reports.

EBITDA, non-GAAP net income and non-GAAP net income per diluted share
are not calculated in accordance with GAAP, and should be considered
supplemental to, and not as a substitute for, or superior to,
financial measures calculated in accordance with GAAP. Non-GAAP
financial measures used in this press release have limitations in
that they do not reflect all of the costs associated with the
operations of the company's business and do not reflect income tax as
determined in accordance with GAAP. As a result, you should not
consider these measures in isolation or as a substitute for analysis
of the company's results as reported under GAAP.

eHealth believes the most directly comparable GAAP financial measure
to EBITDA, and non-GAAP Net Income per diluted share is Net Income
and Net Income per diluted share, respectively. eHealth has not
included in this press release forward-looking Net Income and Net
Income per diluted share because such information is not accessible
on a forward-looking basis without an unreasonable effort. eHealth is
unable to provide a reconciliation of the forward-looking non-GAAP
financial measures, EBITDA and non-GAAP Net Income per diluted share,
to the most directly comparable GAAP financial measures, Net Income
and Net Income per diluted share, because not all of the information
necessary for a quantitative reconciliation of the forward-looking
non-GAAP financial measures to the most directly comparable GAAP
financial measures is available to the Company without unreasonable
efforts. The probable significance of providing these forward-looking
non-GAAP financial measures without the directly comparable GAAP
financial measures is that such GAAP financial measures may be
materially different from the corresponding non-GAAP financial
measure. GAAP net income is expected to be lower than EBITDA and
non-GAAP net income for the fiscal year 2013 and the fourth quarter
of 2013.

Forward-Looking Statements
This press release contains statements
that are forward-looking statements as defined within the Private
Securities Litigation Reform Act of 1995. These include statements
regarding future events, our positioning to generate strong consumer
demand in future periods, our estimates for our performance with
respect to with respect to revenue, EBITDA, and non-GAAP net income
per diluted share for the fourth quarter and fiscal year ended
December 31, 2013, our estimates for our operational metrics with
respect to submitted applications for IFP product, Medicare products
and Medicare Advantage product sold for the fourth quarter ended
December 31, 2013, the timing of our presenting IFP membership
metrics and the utility to our investors of the non-GAAP financial
measures presented is this release. These forward-looking statements
are inherently subject to various risks and uncertainties that could
cause actual results to differ materially from the statements made,
including risks associated with estimates that could differ
materially from actual reported amounts in eHealth's Annual Report on
Form 10-K for the fiscal year ended December 31, 2013; management's
ongoing review of the fourth-quarter results; the impact of
healthcare reform and medical loss ratio requirements; eHealth's
ability to maintain its relationship with health insurance carriers;
eHealth's ability to enter into relationships with new health
insurance carriers, particularly with respect to the sale of
Medicare-related products; eHealth's success in marketing and selling
Medicare-related health insurance plans; eHealth's ability to hire,
train and retain licensed health insurance agents for its Medicare
business; the need for health insurance carrier and regulatory
approvals in connection with the marketing of Medicare-related
insurance products; government disapproval of our use of marketing
material, including call center scripts and our websites, to sell
Medicare-related health insurance products; costs of acquiring new
members; weak economic conditions; consumer awareness of the
availability and accessibility of affordable health insurance;
changes in member conversion rates; lack of membership growth and
retention rates; changes in products offered on eHealth's ecommerce
platform; changes in commission rates or carrier underwriting
practices; maintaining and enhancing eHealth's brand identity; system
failures, capacity constraints, data loss or online commerce security
risks; dependence on acceptance of the Internet as a marketplace for
the purchase and sale of health insurance; dependence upon Internet
search engines; reliance on marketing partners; timing of receipt and
accuracy of commission reports; payment practices of health insurance
carriers; competition; our operations in China; success of eHealth's
sponsorship and advertising business; the licensing of the use of
eHealth's technology or our performance of services pursuant to
government contracts; protection of intellectual property and defense
of intellectual property rights claims; legal liability, regulatory
penalties and negative publicity; changes in our management and key
employees; management of business expansion and diversification;
seasonality; impact of acquisitions, including risks associated with
not realizing anticipated synergies and opportunities with respect to
PlanPrescriber, Inc.; underperformance by PlanPrescriber, Inc.;
PlanPrescriber's maintenance of its relationships with its pharmacy
and other relationships that serve as a source of Medicare-related
leads; maintenance of proper and effective internal controls; impact
of provisions for income taxes; changes in laws and regulations,
including in connection with healthcare reform and/or with respect to
the marketing and sale of Medicare plans; compliance with insurance
and other laws and regulations; exposure to security risks; and the
performance, reliability and availability of eHealth's ecommerce
platform and underlying network infrastructure. Other factors that
could cause operating, financial and other results to differ are
described in eHealth's most recent Quarterly Report on Form 10-Q or
Annual Report on Form 10-K filed with the Securities and Exchange
Commission and available on the investor relations page of eHealth's
website at http://www.ehealthinsurance.com and on the Securities and
Exchange Commission's website at www.sec.gov. eHealth does not
undertake any obligation to update any forward-looking statement to
conform the statement to actual results or changes in expectations.

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